Current Report No.17/2023

Subject: Motionto the Polish Financial Supervision Authorityon theconsent for recognition part of the first half of 2023 net profit inTier 1 capital.

Legalbasis:Article17(1) of Regulation (EU) No 596/2014 of the European Parliament and ofthe Council of 16 April 2014 on market abuse (MAR)

Inreference to current report no. 14/2023 of Bank Handlowy w WarszawieS.A. ("the Bank") regarding a letter from the Bank Guarantee Fund("BFG") on setting the TLAC requirement for the Bank of May 26, 2023,the Management Board of the Bank announces that on August 29, 2023 theBank filed a motion to the Polish Financial Supervision Authority("KNF") on the consent for recognition part of the net profit generatedby the Bank for period from 1 January 2023 to 30 June 2023 in the Bank'sTier 1 capital on a stand alone and consolidated basis.

For thispurpose, the Management Board of the Bank recommends to the OrdinaryGeneral Meeting of the Bank approving the financial statements of theBank for 2023 to:

1._#160;_#160;_#160;_#160;allocatethe amount of at least PLN 800 million from the net profit of the Bankfor 2023 to the Common Equity capital of the Bank;

2._#160;_#160;_#160;_#160;allocatefor the payment of dividend an amount not higher than the net profit ofthe Bank for 2023, reduced by the amount indicated in point 1, takinginto account the required regulatory approvals and individualrecommendation of KNF on meeting the criteria for dividend payment andtaking into account principles of prudent capital management.

Thefiling of the_#160;motionto KNF on the consent for recognition part of first half of 2023 netprofit in the Bank's Tier 1 capital is due to the fact that, in theopinion of the BFG, the Bank is a resolution entity that is a part of aglobal systemically important institution (G-SII) in accordance with thedefinition contained in Art. 4 (136) of the Regulation (EU) No 575/2013of the European Parliament and of the Council of 26 June 2013 onprudential requirements for credit institutions and investment firms("CRR"). In accordance with provisions of the CRR, the amount of TLACrequirement for the Bank together with the combined buffer requirementis 20.80%, while the Bank's Total Capital Ratio (TCR) on a consolidatedlevel as of the end of June 2023 was 20.28%.

Inaccordance with the dividend policy of the Bank, the Bank aims toallocate the majority of its profits to the payment of dividends. TheManagement Board will specify the amount of the dividend in the form ofa separate resolution adopted after determining the amount of the Bank'snet profit for the year 2023.

Thepart of net profit recommended by the Management Board of the Bank,which is to be allocated to the Bank's Common Equity capital wasestimated taking into account the Ban's financial plans and strategy,among others, in terms of increasing capital requirements for credit andoperational risk.